The US Wheat Associates (USW) has announced the closing of its Moscow office on October 1, 2018 due to lack of demand for American wheat in Russia. Since 2016, Russia has been the global leader in grain exports.
USW opened its Moscow office in 1992 for “closer cooperation with the Russian government and representatives of the country’s agrarian sector.
Russia imported a total of about 400,000 metric tons of wheat from the USA, including through a program of assistance in conditions of poor harvest and economic difficulties in Russia in 1998-1999.”
Since then, Russian agriculture has changed to be more market oriented, USW noted, adding that the organization thus had to switch to quality monitoring and price policy in the industry.
Now, the Russian Federation has shifted from being a net importer of wheat to become the largest single wheat exporting country in the world.
Russia has managed to capture more than half of the wheat market in recent years, becoming the world’s biggest exporter of grain, thanks to bumper harvests and attractive pricing.
In 2016, Russia became the world leader in wheat exports. Since the early 2000s, its share of the world wheat market has quadrupled.
Russia’s agricultural export market is actively expanding. It supplies grain to Algeria, Jordan, Egypt, Lebanon, Turkey, and Iran, and Saudi Arabia has announced plans to become a major hub for Russian agricultural products in the Middle East.
Overall, agricultural production in Russia is projected to grow 3% this year, from last year’s 120.7 million tons. That would be the best-ever harvest for Russia, even counting the Soviet era.
Consumer prices in USA are 103.71% higher than in Russia. Consumer prices including Rent in USA are 126.12% higher than in Russia.
Rent prices in USA are 188.54% higher than in Russia. Restaurant prices in USA are 90.95% higher than in Russia. Groceries prices in USA are 149.18% higher than in Russia.
RT.com / ABC Flash Point Agricultural News 2018.